Smart Contracts - CLAUDE.md

This directory contains the core smart contracts for the KRAIKEN protocol.

Architecture Overview

Core Contracts

Kraiken.sol - ERC20 token with Harberger tax staking

Controlled minting exclusively by LiquidityManager
Tax collection and redistribution mechanism
20% supply cap for staking (20,000 positions)

LiquidityManager.sol - Dominant liquidity provider

Three-position anti-arbitrage strategy (ANCHOR, DISCOVERY, FLOOR)
Dynamic parameter adjustment via Optimizer contract
Asymmetric slippage profile prevents profitable arbitrage

VWAPTracker.sol - Price memory protection

Volume-weighted average with data compression (max 1000x)
Prevents dormant whale manipulation

Optimizer.sol - Dynamic parameter optimization

Analyzes staking sentiment (% staked, average tax)
Returns four key parameters for liquidity management
Upgradeable for future algorithms

Stake.sol - Harberger tax implementation

Continuous auction mechanism
Self-assessed valuations create prediction market

Three-Position Strategy

ANCHOR: Near current price, fast price discovery (1-100% width) DISCOVERY: Borders anchor, captures fees (11000 tick spacing)
FLOOR: Deep liquidity at VWAP-adjusted prices

Technical Specs:

Fee Tier: 1% (10,000 basis points)
Tick Spacing: 200 (base), 11,000 (discovery)
Price Validation: 5-minute TWAP, 50-tick tolerance

Optimizer Parameters

capitalInefficiency (0 to 1e18): Capital buffer level
anchorShare (0 to 1e18): % of non-floor ETH in anchor
anchorWidth (0 to 100): Anchor position width %
discoveryDepth (0 to 1e18): Discovery liquidity density (2x-10x)

Development

forge build                # Build contracts
forge test                 # Run tests
forge test --gas-report    # Gas optimization
forge test --fuzz-runs 10000  # Extended fuzzing

Testing

test/helpers/UniswapTestBase.sol - Uniswap integration base
test/helpers/KraikenTestBase.sol - Common utilities
Key tests: LiquidityManager.t.sol, Stake.t.sol, VWAPTracker.t.sol

Code Guidelines

Check lib/uni-v3-lib for existing Uniswap math
Use test/helpers for common patterns
Security: Reentrancy protection, oracle validation
Gas: Batch operations, optimize storage

Analysis Tools

See analysis/CLAUDE.md for fuzzing and attack vector testing.

Uniswap V3 Math

See UNISWAP_V3_MATH.md for detailed math concepts.

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